West Street Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the three months ended September 30, 2010 of $0.7 million compared to $0.3 million for the same period in 2009. After providing for unpaid preferred share dividend obligations of $0.7 million (2009 - $0.7 million), net loss per common share was $nil compared with a net loss of $0.04 per common share during the same period in the prior year.

The total return to shareholders, including changes in the market value of the company's security portfolio, was $1.9 million for the three months ended September 30, 2010 (2009 - $2.3 million) which included net income of $0.7 million and other comprehensive income of $1.2 million. A total of $0.7 million accrued to the preferred shareholders through their cumulative dividend entitlement and as a result, the deficit attributable to the company's common shares decreased by $1.2 million to $47.7 million.

Interest, dividends and other income totalled $0.7 million for the three months ended September 30, 2010, in comparison to $0.4 million in the same period in 2009 and consisted principally of interest and dividends earned on the company's securities portfolio. The increase in investment income is primarily the result of the investment of cash balances into a higher yielding U.S. dollar bond portfolio in the fourth quarter of 2009. Net income for the three months ended September 30, 2010 also included a disposition gain of $0.2 million (2009 – $nil).

Statements of Operations

(Unaudited)

Three months ended September 30

Nine months ended September 30

(Thousands, except per share amounts)

2010

2009

2010

2009

Investment income

$

707

$

360

$

2,133

$

1,293

Operating expenses

(20

)

(24

)

(89

)

(131

)

Net income before investment gains (losses) and taxes

687

336

2,044

1,162

Investment gains (losses)

195

—

338

(393

)

Net income before taxes

882

336

2,382

769

Current taxes

(175

)

(76

)

(538

)

(331

)

Net income

$

707

$

260

$

1,844

$

438

Net loss per common share

$

0.00

$

(0.04

)

$

(0.03

)

$

(0.16

)

Statements of Total Return

(Unaudited)

Three months ended September 30

Nine months ended September 30

(Thousands)

2010

2009

2010

2009

Net income

$

707

$

260

$

1,844

$

438

Unrealized gain on securities

1,203

2,043

602

4,679

Total return

$

1,910

$

2,303

$

2,446

$

5,117

Balance Sheets

(unaudited)

(Thousands)

September 30, 2010

December 31, 2009

Assets

Cash and equivalents

$

5,796

$

4,605

Securities

43,244

42,240

Interest receivables and other

1,049

572

$

50,089

$

47,417

Liabilities

Accounts payable and other provisions

415

$

189

Shareholders' Equity

49,674

47,228

$

50,089

$

47,417

(Thousands, except per share amounts)

September 30, 2010

December 31, 2009

Shareholders' Equity

$

49,674

$

47,228

Less: amounts attributable to preferred shares

Stated value

(42,160

)

(42,160

)

Unpaid dividends1

(55,197

)

(52,995

)

Common share deficit2

$

(47,683

)

$

(47,927

)

Per common share

$

(4.36

)

$

(4.39

)

1

Represents dividends in arrears on preferred shares that are not recorded in the financial statements.